The Day at a Glance | May 16 2024

The Top

• Industrial production in the US logged no monthly change in April.

• Unemployment claims in the US decreased from 232,000 to 222,000 in the week ending May 11th, slightly above the expected 220,000.

• Chinese President Xi Jinping and Russian President Vladimir Putin condemned what they described as increasingly aggressive behavior by the United States on Thursday and committed to deepening their countries’ already close military and defense ties.

• Japan’s economy contracted by -2.0% year-on-year in the first quarter of 2024, challenging the central bank’s efforts to raise interest rates, while the yen’s weakness continues to affect consumption.

• Oil prices remained stable on Thursday following U.S. inflation figures and data showing lower oil inventories.

• After the rally earlier this week, GameStop and AMC fell more than 10% on Thursday before the market opened.

Economic Environment

Industrial production in the US logged no monthly change in April. Industrial activity stalled in April, coming in slightly below market expectations, which had anticipated moderate growth on a monthly basis (0.2%). Disaggregatedata revealed that manufacturing decreased by -0.3%, with almost all categories reporting declines. The largest drops were seen in automobiles and auto parts, electrical equipment, and wood products, which fell by -2.0%, -1.9%, and -1.6%, respectively. On the other hand, primary metals, computer equipment, and transportation equipment were the only categories that recorded growth in April. Additionally, mining fell by -0.6% month-over-month, and electricity generation (utilities) increased by 2.8% month-over-month. Lastly, industry capacity utilization stood at 78.4% in April, 1.2 percentage points below its long-term average level (1972-2023), suggesting minimal inflationary pressures from the cost side.

Markets and Companies

Global markets with mixed sentiment. Major U.S. indices closed with gains yesterday. Additionally, the Dow is now less than 100 points away from the 40,000 mark, a level it has never reached. This morning, markets opened mixed: Dow -0.06%, S&P +0.08%, and Nasdaq +0.12%. In Europe, markets are recording losses, with the Euro Stoxx down -0.34% and sectors operating in mixed territory. Oil and gas stocks fell by -1.2%, while mining stocks gained +0.7%. In Asia, markets logged an increase: Japan’s Nikkei 225 rose +1.39% to close at 38,920.26, and China rose +0.08%. In Mexico, the IPC is down, standing at 57,432 points (-0.04%). Oil prices rose, reaching $79.66 per barrel (+1.3%). Natural gas is up (+2.86%). Meanwhile, most metals are down, with gold at -0.4%, silver at -0.6%, and copper at -1.4%. Lastly, cryptocurrencies are down.

The exchange rate fluctuated overnight, with a minimum of 16.64 and a maximum of 16.74, currently trading at 16.73.

Corporate News

• Under Armour fell -11% after issuing an annual profit guidance that was lower than expected.

• Canada Goose, a coat manufacturer, rose more than +12% after surpassing sales and profit estimates.

• Walmart climbed +4.7% after reporting revenue and profits that exceeded consensus expectations. Walmart mentioned significant progress in e-commerce.

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